Successfully delivering on the levelling agenda would boost the economy by £242bn a year, new research has argued today.

The Centre for Progressive Policy (CPP) said levelling up would result in an annual productivity windfall equivalent to 13% of total GVA in Great Britain.

The research also reveals that levelling up former 'Red Wall' areas would lead to a boost of £39bn in economic output each year.

Analysis by the think tank shows that nearly all of England’s combined authorities suffer from a productivity gap with the rest of the UK, mainly related to poor health and a young workforce.

CPP is calling on the Government to roll out Mayoral Combined Authorities across England, set clear accountability for agreed outcomes with regional mayors, and deliver on skills.

Charlotte Alldritt, director at the CPP, said: 'What began as a thinly veiled political project has the potential to redraw the map of opportunity, productivity and prosperity in the UK for generations.

'But the UK’s long-standing regional economic and social inequalities are often characterised as a problem of ‘London vs The Rest’. CPP’s research shows that the reality is much more complex, with devastating differences within regions as well as between them.

'The government must take these inequalities into account and channel investment now into skills, education and health where it is needed most. The government has made repeated promises on levelling up, but it’s time to see tangible action.'